When SEC staff review the information contained in periodic filings, they often are not satisfied with the information provided. Which one of the following items is most likely to cause SEC staff to question the information submitted by a company?

Question

Quizplus · Accepted Answer

Non-GAAP measures of performance are more likely to raise questions from SEC staff during the review of periodic filings because these measures do not conform to Generally Accepted Accounting Principles (GAAP). Companies often use non-GAAP measures to provide additional insight into their performance, but these measures can vary significantly from company to company, potentially leading to confusion or misleading interpretations if not properly reconciled and explained. The SEC scrutinizes these measures to ensure they are not misleading and are presented alongside the most directly comparable GAAP measures.

When SEC Staff Review the Information Contained in Periodic Filings